Canadian Market Up Sharply As Trump Signals De-escalation In Middle East War

(RTTNews) - Canadian stocks moved up sharply Monday morning, reacting to U.S. President Donald Trump's announcement that he's postponing strikes on Iranian energy infrastructure. Oil's tumble following Trump backing down on threats to attack Iran's power plants lifted sentiment in global markets. Oil prices fell as much as 13%, after having climbed up sharply earlier in the day. Trump said Washington has held "very good and productive" conversations with Iran and has ordered a temporary halt to planned military strikes on Iranian power plants and energy infrastructure. In a post on his Truth Social account, Trump said the decision followed "in-depth, detailed, and constructive" discussions over the past two days aimed at achieving a "complete and total resolution" of hostilities in West Asia. Trump later told CNBC's Joe Kernen that the U.S. is "very intent on making a deal with Iran" after previously claiming he wasn't interested in a deal. Earlier, tensions escalated and oil prices climbed up sharply, triggering a sell-off in Asian and European markets after brent crude climbed to $114 a barrel following Trump issuing a 48-hour ultimatum to Iran to reopen the Strait of Hormuz, warning of strikes on power plants. Tehran retaliated by saying that it would attack Israel's power plants and plants supplying U.S. bases in the Gulf if Trump carries out his threat to "obliterate" Iran's power network. The Canadian benchmark S&P/TSX Composite Index, which surged to 32,050.83, was up 698.44 points or nearly 2.25% at 32,015.85 about half an hour before noon. Materials stocks, which had taken a severe beating in recent sessions, are among the most prominent gainers. Technology, technology, consumer discretionary, industrials, financials, consumer staples, real estate and healthcare stocks are also up with impressive gains. Energy stocks are a bit weak following a sharp drop in oil prices. Lundin Mining and Nova Gold Resources gained 10.5% and 10.3%, respectively. OceanaGold, Aritzia, Equinox Gold, SSR Mining, Teck Resources, Finning International, New Gold, Celestica, Fortuna Silver Mines, Ero Copper, Ivanhoe Mines, First Quantum Minerals and Alamos Gold moved up 6%-8%. Kinross Gold, First Majestic Silver, Iamgold, TFI International, Eldorado Gold, Seabridge Gold, Silvercorp Metals, SNC Lavalin, West Fraser Timber, B2Gold, Pan American Silver Corp., Cineplex, Hudbay Minerals, Shopify, Wheaton Precious Metals and Spin Master Corporation were among the several other major gainers. Vermilion Energy, Peyto Exploration, Parex Resources, Thomson Reuters, Methanex, Whitecap Resources, Nutrien and Kelt Exploration lost 2%-6%.